Kesko's year 2007

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84 Kesko's year 2007 Consolidated statement of changes in equity € million Share capital Attributable to equity holders of the parent company Issue of share capital Share premium Other reserves Currency translation differences Re- valuation surplus Retained earnings Minority interest Balance at 1 January 2006 193.0 0.7 188.7 245.8 -3.7 -0.4 857.3 26.5 1,507.9 Currency translation differences -3.1 -0.8 -3.9 Cost of options granted 2.1 2.1 Cash flow hedges: Hedging result amortised in equity 1.0 -0.4 0.6 Taxes recorded in equity 0.1 0.1 Items recognised directly in equity 2.1 -2.1 -0.3 -0.8 -1.1 Net profit for the period 368.7 10.7 379.4 Total recognised income and expenses for the period 2.1 -2.1 -0.3 367.9 10.7 378.3 Dividend -106.5 -5.7 -112.2 Shares subscribed for with options 2.0 -0.7 5.1 6.4 Other changes 0.5 0.1 0.5 -4.4 -3.3 Balance at 31 December 2006 195.0 0.0 195.9 246.3 -5.7 -0.7 1,119.2 27.1 1,777.1 Balance at 1 January 2007 195.0 0.0 195.9 246.3 -5.7 -0.7 1,119.2 27.1 1,777.1 Currency translation differences 2.2 0.8 3.0 Cost of options granted Cash flow hedges: 2.3 2.3 Hedging result amortised in equity 0.1 13.8 13.9 Taxes recorded in equity -3.6 -3.6 Items recognised directly in equity 2.3 2.3 10.2 0.8 15.6 Net profit for the period Total recognised income and expenses 285.1 22.4 307.5 for the period 2.3 2.3 10.2 285.9 22.4 323.1 Dividend -146.3 -9.3 -155.6 Shares subscribed for with options 0.5 0.0 2.1 2.6 Other changes 0.8 1.3 15.1 17.2 Balance at 31 December 2007 195.5 0.0 200.3 247.1 -3.4 9.5 1,260.0 55.3 1,964.4 Further information about share capital is given in Note 26 and about reserves in Note 27. Other changes include a minority interest in entities acquired during the accounting period. An amount of €-2.2 million (€7.6 million) in cash flow hedges, here electricity hedges, has been removed from equity and recognised in purchase adjustment items in the income statement, and €4.9 million (€3.6 million) has been recorded in equity. A fair value change of €6.6 million (€3.6 million) of the USD-denominated private placement arrangement has been recognised in equity, and €-0.1 million (€0.4 million) in the financial items of the income statement. Total equity
Year 2007 Divisions The Group Financial statements Further information Notes to the consolidated financial statements General information about the company Kesko is a Finnish retail specialist whose stores offer quality to the daily lives of consumers through valued products and services at competitive prices. Kesko has about 2,000 stores engaged in chain operations in the Nordic and Baltic countries, Russia and Belarus. Kesko's operations are divided into five business segments which are Kesko Food operating in the grocery trade, Rautakesko in the building and home improvement trade, VV-Auto specialising in car importing, marketing and retailing, Anttila in the department store trade, and Kesko Agro in the agricultural trade. In addition, other operating activities comprise the reporting for Konekesko engaging in the machinery trade, Indoor in the furniture and interior decoration trade, Intersport Finland in the sports trade, Musta Pörssi in the home technology trade, Kenkäkesko in the shoe trade, Tähti Optikko in the optical trade, and Kauko-Telko specialising in the international technical trade. The Group's parent company, Kesko Corporation, is a Finnish public limited company constituted in accordance with the laws of Finland. The company's business ID is 0109862-8, it is domiciled in Helsinki and its registered address is Satamakatu 3, FI-00016 Kesko. Copies of Kesko Corporation's financial statements and the consolidated financial statements are available at Kesko Corporation, Satamakatu 3, FI-00016 Kesko, and on the Internet at www.kesko.fi. Accounting policies for consolidated financial statements Basis of preparation Kesko's consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRSs), and International Accounting Standards (IASs), IFRS standards and their IFRIC and SIC Interpretations valid at 31 December 2007 have been applied. The International Reporting Standards refer to the Finnish Accounting Standards and regulations based on them, approved for adoption within the EU in accordance with the procedure enacted in EC regulation 1606/2002. Accounting standards not yet effective have not been adopted voluntarily. The notes to the consolidated financial statements also include compliance with the Finnish accounting legislation and Community legislation. All amounts in the consolidated financial statements are in millions of euros and are based on original cost, with the exception of items identified separately, which have been measured at fair value in compliance with the standards. Starting from 1 January 2007, the Group has adopted the following new and revised standards: • IFRS 7 Financial Instruments: Disclosures. IFRS 7 requires disclosures that report on the significance of financial instruments for the entity's financial position and performance, and the nature and extent of risks arising from financial instruments. The adoption of the standard increases the number of notes to the financial statements. • The amendment to IAS 1, Presentation of Financial Statements, increases the number of notes on the entity's capital management objectives. • 85 In addition, the following interpretations have become effective during the financial period but have no effect on the company's financial statements: IFRIC 8 Scope of IFRS 2, IFRIC 9 Reassessment of Embedded Derivatives, and IFRIC 10 Interim Financial Reporting and Impairment. Use of estimates The preparation of consolidated financial statements in conformity with IFRS requires the use of certain estimates and assumptions about the future that affect the reported amounts of assets and liabilities, contingent liabilities, and income and expense. The actual results may differ from these estimates and assumptions. Furthermore, the application of accounting policies is based on the management's judgements, for example, in the classification of assets and in determining whether risks and rewards incident to ownership of financial assets and leased assets have substantially transferred to the other party. The most significant estimates relate to the following. Allocation of cost of acquisition Assets and liabilities acquired in business combinations are measured at their fair values at the date of acquisition. The fair values on which cost allocation is based are determined by reference to market values to the extent they are available. If market values are not available, the measurement is based on the estimated performance of the asset and its future use in Kesko's operating activities. The measurement of intangible assets, in particular, is based on discounted cash flows and requires management estimates and assumptions regarding future cash flows and the use of assets. Impairment test The amount recoverable from a cash generating unit's operating activities is based on value in use calculations in impairment testing. In the calculations, forecast cash flows are based on financial plans approved by the management, covering a period of 3–5 years (Note 11). Employee benefits The Group operates various retirement benefit plans for its employees. Several factors are used in the calculation of items relating to employee benefits. Pension calculations under defined benefit plans in compliance with IAS 19 include the following factors that rely on management estimates (Note 18): • expected return on plan assets • discount rate used in calculating pension expenses and obligations for the period • future salary level • employee service life Consolidation principles Subsidiaries The consolidated financial statements combine the financial statements of Kesko Corporation and all subsidiaries controlled by the Group. Control exists when the Group owns more than 50% of the voting rights of a subsidiary or otherwise exerts control. Control refers to the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. Acquired subsidiaries are consolidated from the date on which the Group gains control until the date on which control
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Kesko’s year 2007
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Year 2007 Contents Divisions The Gr
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Year 2007 the best offers Divisions
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Year 2007 Financial highlights for
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Year 2007 list. In 2008, we intend
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Year 2007 Competitive environment F
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Year 2007 Divisions The Group Finan
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Year 2007 Kesko Food Divisions The
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Year 2007 Health-promoting and resp
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Year 2007 Rautakesko Divisions The
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Year 2007 VV-Auto VV-Auto imports a
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Year 2007 Heini a suitable price in
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Year 2007 Kesko Agro Kesko Agro’s
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Year 2007 Kesko Agro Divisions The
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Year 2007 Other operating activitie
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Page 69 and 70: Year 2007 Maarit Näkyvä b. 1953,
Page 71 and 72: Year 2007 Pekka Lahti b. 1955, M.Sc
Page 81 and 82: Year 2007 Key indicators Group’s
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Page 97 and 98: Year 2007 Note 3 Divisions The Grou
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Page 103 and 104: Year 2007 Note 12 Tangible assets
Page 105 and 106: Year 2007 Note 14 Long-term availab
Page 107 and 108: Year 2007 Changes in deferred taxes
Page 109 and 110: Year 2007 Note 19 Inventories Divis
Page 111 and 112: Year 2007 Note 26 Changes in share
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Page 117 and 118: Year 2007 Note 35 Contingent liabil
Page 127 and 128: Year 2007 Economic value added form
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Year 2007 Shares and shareholders D
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Year 2007 Key indicators Share pric
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Year 2007 Share capital and shares
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Year 2007 Divisions The Group Infor
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Year 2007 Latvia Rautakesko A/S Ren
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Year 2007 Logistics is a process in
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Design and layout: Incognito Photos
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